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How Will the SEC Respond to the RLUSD Launch?

How Will the SEC Respond to the RLUSD Launch?

The long-awaited RLUSD stablecoin, announced in April, officially launched on December 17, creating excitement among the XRP community. Ripple’s new stablecoin is now live on global exchanges, marking a major milestone for the blockchain firm.

XRP Price Surge Amid Launch

The launch positively impacted the price of XRP, with the cryptocurrency jumping over 10% to trade above $2.70. However, despite this celebratory moment, questions regarding potential regulatory challenges stemming from Ripple’s ongoing legal battle with the SEC have surfaced.

Regulatory Concerns for RLUSD

Concerns were raised by XRP community member Bob Mason about the SEC’s previous mention of RLUSD in an April remedies-related reply brief. The SEC had labeled RLUSD as the issuance of a new unregistered crypto asset.

Prominent attorney Bill Morgan addressed these worries, agreeing that the SEC’s stance could raise concerns but emphasized that RLUSD is fully regulated under the New York State Department of Financial Services (NYDFS). Morgan dismissed the SEC’s claims as misguided, reiterating that the market and investors trust RLUSD’s regulatory compliance.

Morgan further noted that Ripple has worked around potential threats posed by the SEC, and any such allegations against RLUSD would hold no legal ground.

RLUSD Listings on Global Exchanges

Ripple announced that RLUSD is now available across several platforms, including Uphold, CoinMena, Bitso, Moonpay, Archax, Bitstamp, Mercado Bitcoin, Bullish, and Zero Hash. Additional listings are expected to be announced soon.

The stablecoin is currently operational on two major networks: the XRP Ledger (XRPL) and Ethereum, offering users flexibility and accessibility. Ripple has also strengthened its advisory board by onboarding industry veterans like Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former COO of the Federal Reserve Bank of Boston.

XRP Market Performance

Despite an initial spike above $2.70, XRP’s price has slightly retraced to $2.54, reflecting a 3.78% decline in the last 24 hours. This surge helped XRP reclaim its position as the third-largest cryptocurrency by market capitalization, following Bitcoin (BTC) and Ethereum (ETH).

Conclusion

The launch of RLUSD marks a significant step forward for Ripple, showcasing its commitment to regulatory compliance and innovation. While regulatory concerns persist, the stablecoin’s strong foundation and market reception signal a bright future for Ripple’s ecosystem.

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